In the latest trading session, Oracle (ORCL) closed at $153.97, marking a -3.85% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.14%.
The stock of software maker has fallen by 16.2% in the past month, lagging the Computer and Technology sector's loss of 4.05% and the S&P 500's loss of 1.43%.
The investment community will be paying close attention to the earnings performance of Oracle in its upcoming release. The company is forecasted to report an EPS of $1.7, showcasing a 15.65% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $16.89 billion, showing a 19.54% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.45 per share and a revenue of $66.94 billion, representing changes of +23.55% and +16.62%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Oracle. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% higher. Oracle currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Oracle is presently trading at a Forward P/E ratio of 21.49. This indicates a premium in contrast to its industry's Forward P/E of 16.78.
It is also worth noting that ORCL currently has a PEG ratio of 1.13. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry currently had an average PEG ratio of 1.38 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 74, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Oracle Corporation (ORCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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